Hedge Fund Regulations Draw GOP Displeasure

A Securities and Exchange Commission push to crack down on the hedge fund industry hit resistance Thursday from Senate Republicans, with one lawmaker accusing the agency of fear-mongering.

Although Democrats were more supportive of the SEC’s efforts, one Republican suggested that SEC staff members were just “looking for new things to do,” and he expressed concern about internal division among SEC commissioners on the hedge fund regulation issue.

Senate Banking Committee Chairman Richard C. Shelby (R-Ala.) said he was concerned about the SEC’s drive. The commission voted 3 to 2 Wednesday to propose that hedge fund advisors must register with it. The plan, opposed by the $850-billion hedge fund industry, goes into a 60-day public comment period, then to a final SEC vote.